M&M Lines Up Rs 12,000 Crore To Revamp Vehicles, Regain Market Share
Employees assemble components to a Mahindra & Mahindra Ltd. Bolero sport-utility vehicle (SUV) on the production line at the company’s facility in Chakan, Maharashtra, India. (Photographer: Udit Kulshrestha/Bloomberg)

M&M Lines Up Rs 12,000 Crore To Revamp Vehicles, Regain Market Share

Mahindra & Mahindra Ltd. will spend Rs 12,000 crore in the next three years towards launching and upgrading a range of passenger and commercial vehicles as it seeks to regain lost market share.

The capex earmarked will fuel the company’s plan of launching 23 new products in commercial and passenger vehicle segments in the next five years, Chief Financial Officer Manoj Bhat said on a call with analysts on May 28 after the company announced quarterly earnings.

Once a market leader in the SUV segment, M&M’s share has plunged from 50% seven years ago to about 14% at present amid aggressive competition from Hyundai Motors India Ltd., Kia India Pvt. and Tata Motors Ltd. It has slipped to the fourth spot in the passenger vehicle segment.

Anish Shah, who recently took over as M&M’s chief executive officer, has set up a road map to revive growth. And the capex forecast offers a glimpse of the company’s focus for the next five years.

“In the passenger vehicle business, the automaker will be spending Rs 9,000 crore towards strengthening its market share in the utility vehicle segment, more than a quarter of which will go towards developing electric vehicles,” Rajesh Jejurikar, executive director of auto and farm sectors at M&M, said on the analyst call. “We want to create a strong sophisticated SUV brand, and our endeavour will be to build a strong product portfolio,” Jejurikar said, adding that about nine launches are planned in the segment.

The company will also spend to create a product portfolio in the electric vehicle segment and will scout for partnerships in areas of software, battery components, materials, among others.

The pipeline includes the five-door Thar, Scorpio, and the new Bolero which will be launched by 2026. Other launches such as XUV700, new XUV300 and SUVs codenamed W620 and V201, will also come with electric powertrain options.

Besides, there will be two “born electric” or battery-powered models built from scratch that will debut in FY26.

Also read: M&M Plans Electric Variants Of All Its SUVs - Exclusive

The remaining Rs 3,000 crore will go towards the farm equipment sector to launch 14 new products across last-mile mobility, small commercial, and new urban pick-up ranges.

The company will also invest to launch 37 new tractor models by 2026.

Additionally, M&M will invest Rs 5,000 crore in group companies and auto and farm subsidiaries. “These are directional investments, and if we don’t see a strong number of returns, we aren’t going to make it,” Shah said.

Also read: Retail Auto Sales Slump To Lowest Since July Amid Second Covid Wave

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